T.A.G. Business Funding
T.A.G. Business Funding
Roofing Guide
Storm deposits inflate your advance capacity. The trap: daily payments don't stop when storm season ends. Understand how underwriters see roofing — before you apply.
Roofing Funding Center
Underwriters calculate your advance as a percentage of average monthly deposits. When storm season deposits are 5–10x your normal baseline, this creates an artificially inflated average that drives a much larger advance than your off-season cash flow can support.
| Scenario | 3-Month Avg | Advance Offered | Off-Season Daily Capacity |
|---|---|---|---|
| 3 storm months ($180K avg) | $180,000 | Up to $270,000 | $8,000/mo ÷ 22 = $364/day |
| Daily payment on that advance | $1,800–$2,400/day — 5–7× what you can cover in January | ||
Most MCA underwriters do not specifically analyze off-season sustainability for roofing contractors. They apply their standard 75–150% multiplier to your 3-month average and offer you whatever that produces. It is your responsibility to run the off-season check yourself.
| Off-Season Check | Safety Assessment | Action |
|---|---|---|
| Daily payment ≤ 50% of off-season avg daily | Safe | Accept the offer |
| Daily payment 50–80% | Tight | Accept with reserve fund in place |
| Daily payment 80–120% | Dangerous | Negotiate smaller advance; explain to funder |
| Daily payment > 120% | Default risk | Do not accept this size advance — counter-offer or decline |
Insurance-approved roofing jobs in your pipeline represent confirmed near-term revenue. This is one of the most powerful supporting documents a roofing contractor can provide — it tells the underwriter your revenue is committed and contracted, not dependent on new storm events.
| Pipeline Evidence | Underwriter Value | Rating |
|---|---|---|
| Signed contracts + ACV approval letters on file | Strongest forward signal — revenue is locked | Excellent |
| Supplement approvals pending with signed contracts | Strong — supplements predictably increase total | Good |
| Verbal adjuster approvals, no paperwork yet | Weak signal — not considered in underwriting | Weak |
| No documentation — prospecting in progress | Advances based on history only, no pipeline credit | None |
| NSF Pattern | Impact | Rating |
|---|---|---|
| 0 NSFs | Cleanest profile — best rates available | Excellent |
| 1–2 NSFs in storm month (high-volume, high-expense) | Often explained; minor rate impact | Acceptable |
| NSFs in off-season months | Pattern concern — cash management issue | Flag |
| 3+ NSFs any month | Significant rate increase or decline | Critical |
For roofing contractors, stacking is especially dangerous because every daily ACH continues through the off-season. A roofer with 2 active MCAs totaling $1,500/day in daily payments who enters November with $10K/month in deposits will fail within 30–45 days of off-season arrival.
| Active Positions | Off-Season Risk Level | Rating |
|---|---|---|
| 0 positions | None — full capacity available | Best |
| 1 position — off-season sustainable | Low — if daily ≤40% of off-season daily deposits | Acceptable |
| 1 position — tight off-season | High — daily payment may fail in slowest months | Risky |
| 2+ positions | Near-certain default risk entering off-season | Critical |
Apply during storm season with pipeline documentation. Always verify off-season sustainability before accepting.